Mama noodles maker supports 400 baht minimum wage hike
Thai President Foods PLC, the producer of Mama instant noodles, expressed no opposition to the proposed minimum wage increase to 400 baht, according to Managing Director Phan Phaniangwet. He urged the Thai government to finalise the decision promptly, citing the recent volatility of the Thai baht.
The baht’s rapid appreciation in recent weeks has had mixed effects on the company. As of yesterday morning, September 22, the baht reached 32.87 against the US dollar. This appreciation has slightly reduced the cost of importing raw materials, such as tapioca flour, but has also impacted export revenues.
Phaniangwet revealed that the company imports and exports products while noting that the effects have been manageable so far. The baht has varied from 37 baht per US dollar to under 33 baht, and its future movement remains uncertain.
Phaniangwet called on government regulators to prevent excessive currency swings, stating that businesses need time and clear signals to adjust. He further stressed the importance of stability for planning and operations.
Regarding the proposed minimum wage hike, Phaniangwet stated that the company does not oppose it but he encourages swift government action, believing that wage increases would boost purchasing power more effectively.
Currently, Mama’s sales are growing by 8 to 9%, as the product remains a household staple, regardless of economic conditions. Phaniangwet’s remarks underline the resilience of Mama instant noodles in the face of economic fluctuations, reported Pattaya News.
In similar news, Thai President Foods Plc, the company behind Mama instant noodles, anticipates significant growth in the instant noodle market this year, with the premium segment potentially outperforming the overall market.
In other news, Thailand’s baht is rocketing towards its biggest quarterly rise since the Asian financial crisis, a development that has key tourism and export industries clutching their pearls.
Since the end of June, the baht has surged 10% against the dollar, its most significant gain since early 1998. This sudden leap has prompted frantic appeals from the tourism, hotel sectors, and business chambers for measures to cool down the rally.
